For one of the condo, COVA villa opposite the Segi college..had advertised this GRR 8%. and what this mean? is this what they estimate how much we can earn back monthly in the perpective of the demand, rental price and etc..??

ASk Questions like

- Returns 8% ...is it p.a. rate?....for how many years?
- any 'service charge' payable to them or 3rd party to 'manage' rental of your unit?
- what cost is needed to furnish/do up unit before it is ready for rental?

sory i juz have a glimpse on this condo in their website after heard this from my friend. this is the screenshot:



p.a rate stand for what?

p.a.= per annum

as answered by alanyuppie, p.a. = per annum= per year

Ask them the questions

- any 'service charge' payable to them or 3rd party to 'manage' rental of your unit?
- what cost is needed to furnish/do up unit before it is ready for rental?
- What do they mean by 3 + 3 years...what's the diff between first 3 years and later 3 years?
- Gurantee given by who?...check credibility of gurantor.
- ask for a copy of the rental gurantee agreement
- Is the projected monthly rental a feasible/reasonable figure?

After they give u the answer, then you do the maths

ROI 14%.
Most likely will be lower after including other cost.

This is a speculation, there is no evidence the Return will remain after 3+3 years.
3+3, 3 years to build?
If project stop, pay max until 3 years?

Sorry...I m kind of dense

How to arrive at 14%?



TKK lah...Project terbengkalai, how to pay leh?

Actually I dont believe in all this garuntee stuff.. Buyer should do their own research rather than believing in brouchers and sales talk.. There are always risk in property investment..

If it gives garuntee, who is the garuntor?.. What happen if the return is not as promised by the developer? any legal action can be taken to sue them?? any garuntee agreement sign btw buyers and developer and will the agreement enforced by law??

However, I think Cova will be a good place especially catering for Segi College student market.. There is supply, but still hav to work out the ROI in order to fulfill your investment strategy.. Good luck..

The developer I think is Casa Andaman group which has a good tie up with Segi College. Their 1st condo/apartment is Subang which gave buyers guaranteed 9% p.a returns on purchase price for 5+5. Not a bad investment IMHO in terms of 8% GRR when you can get loan of BLR -2%! Definitely more than enough to cover your bank loan plus extras. You can basically get the property for minimal outflow, then guaranteed 3 years income and well positioned for an uptrend in 3 years time in regards to timing (potential capital appreciation).


minolta

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Added on April 26, 2009, 8:02 pmJust get a additional letter/page inserted into your S&P or supplementary agreement that says the developer pays you the GRR irregardless of whether they can rent out the property or not.

This post has been edited by Minolta: Apr 26 2009, 08:02 PM

Never buy a project due to its GRR promise. There's always a exit clause that developers could use in case shit happens.

Buy the property only if its worthwhile IN SPITE OF the rental guarantee.



This post has been edited by Pai: Apr 26 2009, 08:29 PM

GRR = the return normally have been factor in the selling price.

If SEGi moves, what happens?